Jindal Drilling reports positive Q2 results, but areas for improvement remain

Jindal Drilling & Industries, a smallcap company in the oil exploration and refineries industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, Jindal Drilling has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 10 to 15 in the last three months.

One of the key factors contributing to this positive performance is the growth in net sales, which has increased by 45.52% year on year to Rs 343.48 crore. The company has also seen a significant growth in its profit before tax (PBT) and profit after tax (PAT) in the quarter, with a growth of 42.1% and 66.3% respectively.

Jindal Drilling has also been able to settle its debtors faster, with a debtors turnover ratio of 5.21 times in the last five half yearly periods. This is the highest in the industry, indicating efficient management of debtors.

However, there are some areas that need improvement for Jindal Drilling. The company's interest costs have increased by 63.91% in the last half yearly period, indicating increased borrowings. Additionally, the company's operating cash flow has been falling each year for the past three years, and its operating profit margin has also decreased in the last five quarters.

Furthermore, Jindal Drilling's operating profit (PBDIT) in the last five quarters has been the lowest, and its short term liquidity has deteriorated with the lowest cash and cash equivalents in the last six half yearly periods.

Overall, Jindal Drilling has shown positive financial performance in the quarter ending September 2024, but there are some areas that need improvement. Investors are advised to hold their position in the company's stock and keep an eye on its future performance.